To: Steve Wilford
From: Reyan Edeza
Date: 20 March 2022
Subject: Paul's Discount Tires & Repairs Strategic Plan
Mr. Wilford, below are the answers to your four questions regarding your
strategic plan.
What is wrong about the strategy?
When analyzing a company plan, Professor Henry Mintzberg of McGill
University devised a method known as the 5 Ps of strategy. This method
will assist you in determining the benefits and drawbacks of your current
plan. (The Saylor Foundation, 2014 PG 5. Para 3 Starting with the problem,
it should focus on the first P, a plan. According to the plan, a meticulously
constructed set of measures that a corporation wants to take to be
successful (The Saylor Foundation, 2014 PG 5. Para 3. While you have a
current strategy, it is not particularly thorough and indicates that Paul's
Discount Tires will continue to do what it has done for the previous 21
years. This is incorrect because Paul's Discount Tires is having problems
dealing with the epidemic and needs a fresh concept or something to
modify to stay in business. There is nothing wrong with this strategy; it has
met the five unconventional business practices that most successful
businesses use: it has committed to identity, it has translated its strategy
into every day with precision, it has cut costs to grow stronger as needed,
and it has shaped their future using their core values (Leinwand& Mainardi,
2016. Para 5).
B. What is right about this strategy?
By linking a company's aim and its restrictions, a well-defined strategic plan
should present a clear picture of its current and future situation. Paul's
Discount Tires and Repairs built its strategic plan around four main areas:
competitive advantage by providing the lowest price discount tires, vehicle
repairs, exceptional customer service, and quality work, culture values to
overcome the COVID Pandemic's setbacks, cost-cutting as needed to
provide growth, and plans for the next ten years (Leinwand& Mainardi,
2016. Para 4). The aspect of this approach that is correct is that it uses the
company's present position to assist strengthen the plan. Paul's Discount
Tires has been in business for 21 years and is recognized for offering the
most competitive pricing. The company's standing regarding its competitors
is critical at this point. Continuing to provide consumers reduced pricing
while simultaneously offering high-quality labor and good customer service
will keep this firm ahead of the competition (The Saylor Foundation, 2014
PG 5. Para 3)
C. We are the market leader in discount tires and repairs in our city,
indicating that we currently have a competitive advantage. Will we sustain
it with this strategy?
Paul's Discount Tires and Repairs is the city's market leader in discount tires
and repairs, and their strategic plan will help them maintain that position.
They manage their company using the following five unorthodox practices:
They commit to identity via a value proposition that includes offering the
lowest price for their service, having a world-class customer service system
with unique capabilities, and a carefully selected portfolio of a tire and
minor repair services—putting their strategy into practice by developing a
ten-year plan to provide consistent service and high-quality work to their
consumers. Putting their culture to work while adhering to the underlying
values that the company was founded on—cutting costs when needed to
get stronger and maintaining their employees instead of laying them off
during bad times—creating their future to overcome the COVID pandemic's
setback (Leinwand& Mainardi, 2016. Para 7). However, just because they
are the market leader today does not imply they will always be the market
leader if they do not continue to enhance their services to keep their clients
loyal. You are accurate in claiming that there is now a competitive
advantage as the industry leader in inexpensive tires and repairs. As
previously said, making use of our advantageous position is critical in this
strategic business strategy. With a well-thought-out plan, this method can
be sustained. The company will continue to set itself apart from the
competition by consistently delivering the lowest costs and guaranteeing
our work.
D. One thing to do to improve on this strategy.
Human capital is one thing they can do to better their plan. Human capital
encourages employee innovation, boosts employee happiness, and
improves employee-to-employee and employee-to-customer
communication. A good marketing approach will be required to guarantee
that our clients know that the company will provide the highest quality and
lowest pricing in the business. Alternatively, the company may use incentive
schemes to keep our clients returning. All of these factors will contribute to
our industry's long-term viability.
References
Leinwand, P., & Mainardi, C. (2016, February 3).
Creating a strategy that
works
. Strategy+business. Retrieved March 17, 2022, from
https://www.strategy-business.com/feature/Creating-a-Strategy-That-
Works
The Saylor Foundation. (2014).
Chapter 1 Mastering Strategy: Art and
Science
. LEOconten. Retrieved March 18, 2022, from
https://leocontent.umgc.edu/content/dam/equella-
content/bmgt495/Chapter_1Mastering_Strategy.pdf
